As Africa advances economic integration under the African Continental Free Trade Area (AfCFTA), small and medium‑sized enterprises (SMEs) continue to face systemic barriers that make cross-border trade costly and complex. At the 2026 Africa Prosperity Dialogues, business leader Daniel McKorley emphasized that addressing these challenges is essential for the continent’s SME sector to reach its full potential.
McKorley, Executive Chairman of the McDan Group, highlighted persistent logistical inefficiencies—such as high transport costs, lengthy border delays, and inconsistent customs procedures—as major obstacles limiting intra-African commerce for smaller firms. He noted that without practical solutions, AfCFTA risks remaining “a beautiful document rather than a living marketplace.”
The impact of these challenges is evident for African entrepreneurs. A coffee trader in Tamale, Ghana, experiences eroded profit margins due to delayed customs clearance and unpredictable transport costs. Meanwhile, apparel exporters in Kigali, Rwanda, report that fragmented regulatory requirements across neighboring markets force them to scale back ambitions and focus on local demand rather than tapping into larger regional markets.
McKorley’s remarks underscore a structural issue beyond policy rhetoric: inadequate infrastructure and fragmented logistics networks continue to constrain SME growth. Experts note that inefficient transport corridors and border procedures add significant time and cost to trade, discouraging many businesses from venturing beyond national borders.
To overcome these barriers, McKorley and other participants at the Dialogue stressed the need for investments in better connectivity, including improved roads, ports, and digital customs systems, alongside stronger collaboration between public and private sectors. Without these practical measures, many African SMEs risk being excluded from the trade opportunities that AfCFTA is designed to unlock.
